Free Loan EMI Calculator With Amortization Schedule
You need to know how much you're really paying before you sign that loan. Not just the monthly EMI, but also the total interest over the life of the loan. A loan calculator shows you both of these things, as well as a month-by-month breakdown of where each payment goes. Before I signed the papers for my car loan, I did the math and saw that the 6-year term cost me almost $4,000 more in interest than the 4-year term.
The same rate, but for two more years. That calculation really saved me money.
What is an EMI
Equated Monthly Installment, or EMI, is your fixed monthly payment that includes both the loan amount and the interest. Most of the payment goes to interest at the beginning of your loan. More goes to the principal later on. The amount you pay each month stays the same.
How to Figure Out Your EMI Type in three numbers: The loan amount is the amount of money you are borrowing. The annual percentage rate (APR) is the interest rate. Loan term: the number of months or years you have to pay it back. The EMI calculator quickly tells you how much your monthly payment will be, how much interest you'll pay, and how much you'll pay over the life of the loan.
It also makes a pie chart that shows the difference between the principal and the interest. The Schedule for Amortization This is the part that most people don't look at, but it's the most interesting. The amortization schedule shows how much of each monthly payment goes toward paying off the loan and how much goes toward interest. If you have a $300,000 mortgage at 6.5% for 30 years, your first payment will be about $1,896.
Out of that, $1,625 goes to interest and only $271 goes to the principal. You've paid more than $113,000 in five years, but your balance has only gone down by about $18,000. When you see these numbers laid out, it changes how you think about loan terms. Looking at Different Loan Options The best way to use this tool is to run the same loan amount at different rates and terms.
You'll quickly see that a lower interest rate or shorter term can save you thousands, and sometimes tens of thousands, of dollars. Compare the 15-year and 30-year options for any loan you have. The monthly payment is higher for 15 years, but the total interest paid is much lower. It's not always the best choice (cash flow is important), but it's good to look at the numbers.
You can also use the mortgage calculator to figure out how much you can borrow for a car, a personal loan, or a student loan. Different numbers, same math.